{
  "slug": "how-much-car-can-i-afford",
  "title": "How Much Car Can I Afford?",
  "heading": "How Much Car Can I Afford?",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/how-much-car-can-i-afford",
  "summary": "On a $5,500 monthly income, a $400 max car payment budget affords roughly a $23,000 car at typical loan terms.",
  "description": "A common rule caps total vehicle payment at 10-15% of gross monthly income, and this calculator turns that payment budget into a maximum loan amount using your interest rate and term, then adds your down payment to get a target purchase price.",
  "formula": "Max Payment = Income × Budget %. Loan Amount solved from payment via amortization formula. Max Price = Loan + Down Payment.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=how-much-car-can-i-afford",
  "inputs": [
    {
      "id": "income",
      "label": "Monthly gross income",
      "kind": "number",
      "hint": null,
      "default": 5500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "budgetPct",
      "label": "% of income for car payment",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": "%",
      "min": 5,
      "max": 20
    },
    {
      "id": "downPayment",
      "label": "Down payment",
      "kind": "number",
      "hint": null,
      "default": 3000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "apr",
      "label": "APR",
      "kind": "number",
      "hint": null,
      "default": 7,
      "unit": "%",
      "min": 0,
      "max": 25
    },
    {
      "id": "termMonths",
      "label": "Loan term",
      "kind": "number",
      "hint": null,
      "default": 60,
      "unit": "months",
      "min": 12,
      "max": 96
    }
  ],
  "outputs": [
    {
      "id": "maxPrice",
      "label": "Max car price",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "loanAmount",
      "label": "Max loan amount",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "maxPayment",
      "label": "Max monthly payment",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Monthly gross income: 5500 $",
      "% of income for car payment: 10 %",
      "Down payment: 3000 $",
      "APR: 7 %",
      "Loan term: 60 months"
    ],
    "outputs": [
      "Max car price: $30,776",
      "Max loan amount: $27,776",
      "Max monthly payment: $550"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter monthly gross income ($).",
      "Enter % of income for car payment (%).",
      "Enter down payment ($).",
      "Enter apr (%).",
      "Enter loan term (months).",
      "Read your max car price on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "income": 3300,
        "budgetPct": 6,
        "downPayment": 2000,
        "apr": 7,
        "termMonths": 36
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "income": 5500,
        "budgetPct": 10,
        "downPayment": 3000,
        "apr": 7,
        "termMonths": 60
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "income": 8800,
        "budgetPct": 16,
        "downPayment": 5000,
        "apr": 7,
        "termMonths": 96
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How much car can I afford?",
      "a": "On $5,500 monthly income at a 10% payment budget ($550/month), a $3,000 down payment, 7% APR, and 60-month term, you can afford roughly a $30,000 vehicle."
    },
    {
      "q": "Should the 10-15% rule include insurance and gas?",
      "a": "No, that guideline is for the loan payment alone — many financial planners suggest a broader 20% cap on total vehicle costs including insurance, fuel, and maintenance combined."
    },
    {
      "q": "Does a longer loan term let me afford more car?",
      "a": "Yes on paper, but longer terms (72-84 months) mean more total interest and higher risk of being underwater on the loan since the car depreciates faster than the balance drops early on."
    },
    {
      "q": "Should I use gross or net income for the budget percentage?",
      "a": "Gross income is the common convention for lender guidelines, but budgeting off net (take-home) pay gives a more conservative, realistic affordability check."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/how-much-will-my-car-payment-be",
    "https://www.revenuelab.fyi/toolbox/how-much-down-payment-do-i-need"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — How Much Car Can I Afford? (https://www.revenuelab.fyi/toolbox/how-much-car-can-i-afford)"
}